CORPORATE AND PROFESSIONAL UPDATE MAY 31, 2016

Professional Update For the Day

Untitled7Direct Tax:

CBDT Clarification regarding no cancellation of registration u/s 12AA in certain circumstances : CBDT issues beneficial circular No. 21/2016 dt. 27 May 2016, clarifies that where charitable trust engaged in ‘advancement of object of general public utility’ crosses the threshold of 20% or Rs. 25 lakhs for prescribed commercial activities under proviso to Sec. 2(15), it shall not be mandatory to cancel the Sec. 12AA registration. It is clarified that it shall not be mandatory to cancel the registration already granted u/s 12AA to a charitable institution merely on the ground that the cut-off specified in the proviso to section 2(15) of the Act is exceeded in a particular year without there being any change in the nature of activities of the institution. If in any particular year, the specified cut-off is exceeded, the tax exemption would be denied to the institution in that year and cancellation of registration would not be mandatory unless such cancellation becomes necessary on the ground(s) prescribed under the Act.

This circular was much needed due to the introduction of Chapter XII-EB in the Act vide Finance Act, 2016, prescribing special provisions relating to tax on accreted income of certain trusts and institutions wherein cancellation of registration granted u/s 12AA may lead to a charitable institution getting hit by sub-section (3) of section 115TD and becoming liable to tax on accreted income. Therefore, any cancellation of registration in cases as above would have caused additional hardship to an assessee institution due to attraction of tax-liability on accreted income. It has been further advised to the field authorities so far as not to cancel the registration of a charitable institution granted u/s 12AA just because the proviso to section 2(15) comes into play. The process for cancellation of registration is to be initiated strictly in accordance with section 12AA(3) and 12AA(4) after carefully examining the applicability of the relevant sections of the act.

Delhi HC allows assessee’s writ & quashes assessment u/s 143(3) read with Sec 144C for AY 2009-10,  presumes that order was not passed within the prescribed time-limit as Revenue could not prove service of final assessment order u/s 144C on assessee As Revenue could not produce any proof of dispatch of the assessment order soon after it was passed , HC accepts assessee’s contention that final assessment order was not passed on the date mentioned therein and was probably antedated in order to avoid the expiry of the limitation period.[TS-285-HC-2016(DEL)]

Cracking The Conundrum: Appearance Clause Under Taxation Statutes

CBDT invites comments on GAAR to provide a fillip to its implementation 

Indirect Tax:

CBEC provides that  Notification No. 30/2012 – Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 472 (E), dated the 20th June, 2012 shall be applicable mutatis mutandis for the purposes of Krishi Kalyan Cess vide Notification No. 27/2016 dated 26/05/2016. This notification shall come into force from the 1st day of June, 2016.

CBEC provides vide Notification No. 28/2016 dated 26/05/2016 that Krishi Kalyan Cess shall be leviable only on that percentage of taxable value which is specified in column (3) for the specified taxable services in column (2) of the Table in the notification No. 26/2012-Service Tax, dated 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide number G.S.R. 468 (E), dated the 20th June, 2012. Thisnotification shall come into force from the 1st day of June, 2016.

CBEC has inserted a new clause in the  Explanation 1, after clause (d ) in notification 39/2012- service tax dated 20/06/2012 vide Notification No.29/2016 dated 26.05.2016. The new clause is “(e)Krishi Kalyan Cess as levied under sub-section (2) of section 161 of the Finance Act, 2016 (28 of 2016).” 

Company Law:

Query: In case of striking off the name of Company under Fast Track Exit mode, what if any of the stakeholders raises objection for Striking off the name of the Company?
Answer: If any of the stakeholders raises objection, the applicant Company can reply to that. There is no time period for giving of reply by the applicant Company. However, the applicant Company needs to note that if the validity of the Fast track exit mode is expired before resolving all the queries, then the procedure under fast track exit mode may not be undertaken by the ROC.

Query:  We filed Form FTE with the ROC in the month of March 2016 which was pending for approval since then. Now we have received Resubmission but when we are entering the date of Statement of Accounts of March 2016 in Form FTE, there is pop-up error which is coming as –Date of Statement of accounts cannot be older than 30 days of filing Form FTE. Kindly advice us what should be done.
Answer: As in your case, you have originally filed Form FTE in March 2016, so it is quite obvious that Statement of Accounts would be of March 2016 only. In case you are getting this error on preparation of Resubmission form, you should raise ticket with MCA Portal and mail the detail of problem being faced toappl.helpdesk@mca.gov.in as this is technical issue on the part of MCA Portal.


Key Dates: 

Statement by Non-Resident having Liaison Office in India (u/s 285): 31.05.2016

Today 30/05/16 is the last day for Issue of TDS/TCS certificate (Form 16A/27D) for Q4 of 2015-16 by all deductors.

31.05.16 is the last date for issue of TDS certificate to employees (Form 16), for the F.Y. 2015-16 by all deductors.

High expectations are the key to everything.       -Sam Walton

 “The way to get started is to quit talking and begin doing.”

“If you have the spirit of understanding everything in a positive way, You will enjoy each and every moment of life, whether it is pressure or pleasure.”

We look forward for your valuable comments. www.carajput.com

FOR  FURTHER  QUERIES  CONTACT US:

W: www.carajput.com

E: info@carajput.com

T:011-233-4-33333 ,  9-555-555-480 Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 28, 2016

Professional Update For the Day:

6DIRECT TAX:

Income Tax: Delhi HC allows assessee’s writ & quashes assessment u/s 143(3) read with Sec 144C for AY 2009-10,  presumes that order was not passed within the prescribed time-limit as Revenue could not prove service of final assessment order u/s 144C on assessee As Revenue could not produce any proof of dispatch of the assessment order soon after it was passed , HC accepts assessee’s contention that final assessment order was not passed on the date mentioned therein and was probably antedated in order to avoid the expiry of the limitation period.[TS-285-HC-2016(DEL)]

Income Tax : Allowability of loss on demerger in the computation of book profit u/s 115JB – MAT – the observation of the AO that such loss could not be debited to the profit and loss account and ought to have been adjusted against the reserve of the assessee company is not Correct – Tri

CBDT enables electronic filing of forms-ITR 1, 4S, 15CA, 15CB & 15CC; other ITR forms to be enabled shortly, CBDT press release dated 04-04-2016.

INDIRECT TAX

Service Tax: CBEC provides that  Notification No. 30/2012 – Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 472 (E), dated the 20th June, 2012 shall be applicable mutatis mutandis for the purposes of Krishi Kalyan Cess vide Notification No. 27/2016 dated 26/05/2016. This notification shall come into force from the 1st day of June, 2016

Service tax : CBEC provides vide Notification No. 28/2016 dated 26/05/2016 that Krishi Kalyan Cess shall be leviable only on that percentage of taxable value which is specified in column (3) for the specified taxable services in column (2) of the Table in the notification No. 26/2012-Service Tax, dated 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide number G.S.R. 468 (E), dated the 20th June, 2012. This notification shall come into force from the 1st day of June, 2016.

Central Excise: Entitlement of Cenvat credit – Input Services not received in the registered unit – appellant is entitled for the Cenvat Credit in respect of Security Services, Fettling Contract Service & Architectural Services used outside the factory of the appellant in their own Hinjewadi & Wai unit

KEY DATES :

Issue of TDS/TCS certificates for March quarter by all deductors/collectors: 30.05.2016. 

“Failure will never overtake me if my determination to succeed is strong enough.”

We look forward for your valuable comments. www.carajput.com Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 21, 2016

Professional Update For the Day:

Untitled5DIRECT TAX: 

Income Tax: Disallowance of profit in sale of agriculture land – whether transaction in property by assessee company should not be treated as business activity – Held that – There is no enabling provision in the income-tax law prescribing that even if the assessee s income is exempt by a provision, then it can be forcibly brought into the tax net by assuming the assessee s activity to be adventure in the nature of trade. – ( The ACIT, Circular, Alwar Versus M/s. Focal Point Builders and Promoters Pvt. Ltd. ) – 2016 (5) TMI 635 – ITAT MUMBAI.

Income Tax: Addition u/s 41 – conversion of unsecured loan from the sister as gift by book entry – in the earlier years, interest paid to sister was claimed as deduction – whether remission / cessation of liability u/s 41(1) – Held that – There was no remission of liability u/s 41(1) of the Act, because the gift was genuinely made by Smt. Kiranben Gandhi and accepted by the assessee out of natural love and affection and there was no business consideration  ( Shri Shailesh C. Modi Versus Income Tax Officer, Ward – 1 (1) (4) , Surat)-  2016 (5) TMI 637 – ITAT AHMEDABAD. 

INDIRECT TAX :
VAT : Department of Trade & Taxes has extended the last date of filling of online/hard copy of fourth quarter return for the year of 2015-16 in DVAT Form-16, DVAT Form-17, and DVAT Form 48 along with required Annexure /enclosures to 23/05/2016 vide Circular No. 5 of 2016-17 dated 16.05.2016 . However, the tax due shall continue to be paid in the usual manner as per the provisions section 3(4)  of the Delhi value Added Tax Act, 2004.

VAT & CST : Department of Trade & Taxes has issued a Circular on Grant of registration under DVAT & CST vide circular No. 6 of 2016-17 dated 17.05.2016.The department of trade and taxes has developed a mobile application DVATMsewa to provide various services to the traders.One of the services to be provided with this app is registration of delars under DVAT Act,2004 and CST Act, 1956

Key dates :

Today (21.05.16) is the last date for e-payment of DVAT & CST for the month of April, 2016.

Issue of TDS Certificate in case of payment/credit made in April for purchase of property u/s 194Iain Form 16B: 22/05/2016

Issue of DVAT Certificate for deduction made in April: 22/05/2016

Payment of ESI of April: 21/05/2016

No one gets a sudden rise, not even the sun. It takes time to rise to the peak of success. Just keep your efforts going and be positive. 

We look forward for your valuable comments. www.carajput.com Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 27, 2016

Professional Update For the Day: 

Untitled18ADirect Tax:

Domestic black money to be declared to jurisdictional principal CIT or CIT: CBDT clarifies

No disallowance could be made on estimated basis without rejecting books of account of Assessee 

The demolition of the structure would not constitute a transfer of the assets in terms of Section 54(3) of the Act in view of the decision of the Apex Court in the matter of Vania Silk Mills P. Ltd. v. CIT, reported in 191 ITR 647. In the above case, the Apex Court has held that when an asset is destroyed, there is no question of transfer taking place under the Act. The Apex court held that in terms of the Act that the words ‘Extinguishment of any right’ in Section 2(47) of the Act, does not include an extinguishment of right on account of destruction. It has to be an extinguishment of right on account of transfer. Thus, a destruction of assets when not on account of any transfer would not be hit by Section 54F(3) of the Act.(Dilip Manhar Parekh Vs. DCIT) ITAT Mumbai

HC disallows input tax credit to Karnataka Dealer for its default in maintaining books and producing tax invoices[2016] 69 taxmann.com 299 (Karnataka)Nav Bharat Steel v. State of Karnataka 

High court had allowed Sec 10A benefit to assessee sub-contracting part of its software development work (‘onsite work’) to AEs abroad. High court had rejected Revenue’s contention that Sec 10A benefit should be denied as onsite work was not performed in a free trade zone or through assessee’s own personnel / employees. High court had held that Sec 10A nowhere provides that ‘onsite’ work of software development should be carried out by assessee’s own personnel. HC had further held that the “on-site” work done under the direct supervision and control of assessee “would be nothing but on behalf of the assessee ‘itself'”(MphereSoftware)

Indirect Tax:

CBEC has issued a circular no. 19/2016 dated 20.05.2016 In furtherance to the proposal that each warehouse be allotted a unique warehouse code so that importers can declare the warehouse in which goods shall be deposited, at the into-bond bill of entry stage, CBEC explains the module developed at ICES to capture details of customs bonded warehouses licensed in each Commissionerate. Unique warehouse code generated shall be published on ICEGATE website for information of trade. Declaration of Warehouse Code in Bill of Entry would become mandatory for filing Into-Bond and Ex-Bond Bill of Entry from June 20, 2016

Company Law:

Query: – In case status of the Company is non-active on MCA portal, can it make active and apply under fast track exit mode?

Answer: In case ROC has sent notices to the Company under Section 560 (1) or 560 (2) or 560 (3) of the Companies Act 1956, then such Company needs to make an application to the Registrar of Companies, in writing, that it proposes to strike off the name of the Company by following the procedure under Fast Track Exit mode and submit the documents requisite under fast track exit mode. Further procedure will be initiated by the Registrar in this regard.

Key Dates:

Issue of TDS/TCS certificates for March quarter by all deductors/collectors: 30.05.2016

Extension to 27.05.16 of last date to file DVAT-16, DVAT-17 & DVAT-48 for Q4 of 2015-16.circular no. 7 of 2016-17 dated 23.5.16.

True guidance is like a small torch in a dark forest. It doesn’t show everything at once.But gives enough light for the next step to be safe.

If you want a quality, act as if you already had it.   -William James

We look forward for your valuable comments. www.carajput.com 

FOR FURTHER QUERIES  CONTACT US:
W: www.carajput.com

E: info@carajput.com

T:011-233-4-33333 ,  9-555-555-480 Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 26, 2016

Professional Update For the Day:

DIRECT TAX:

CBDT notifies jurisdiction for Income Declaration Scheme, 2016 Circular No. 19/2016-Income Tax.

SCN cannot be issued to debtors until tax liability crystallise – HC [M/s Quality Fabricators and Erectors Vs The Deputy Director, DGCEI, Zonal Unit Mumbai and Others (High Court Of Bombay) ]

Sec. 263 not justified due to multiple view on applicability of TDS[Neo Sports Broadcast Pvt.Ltd Vs CIT (TDS) (ITAT Mumbai)]

No Addition u/s 68 if identity, creditworthiness & genuineness established[DCIT Vs. M/s Overseas Infrastructure Alliance (I) Pvt. Ltd. (ITAT MUMBAI)]

ITAT deletes hypothetical, harassing & inconvenient decision[Mrs.Mintu Sayermal Jain Vs Income Tax Officer (ITAT Mumbai)]

Income tax has enabled Electronic Verification Code for online filling of appeal before Commissioner (Appeal) in Form 35 for taxpayers not required file using DSC on income tax India Efilling .(Click here to view)

Mumbai ITAT upholds CIT(A)’s inclusion of interest income earned on Fixed Deposit Receipts as part of operating income while benchmarking international transactions in assessee’s Manufacturing and Trading Activities segment for AY 2005-06; Holds that since advances received against exports were immediately placed in FDR with the bank for the purpose of taking letter of credit in favour of the overseas sellers, it could not be said that surplus funds were parked in FDRs only to earn interest income. MUMBAI ITAT – [TS-264-ITAT-2016(Mum)-TP]

INDIRECT TAX:

Central Govt. issues draft Notification and Circular proposing to provide optional single registration and return to first stage dealer and importer; As per proposed Notification, assessee who conducts business as first stage dealer shall be exempt from taking separate registration as an importer and vice versa; However, same is optional and any assessee needing separate registration for his own business purposes may so register; This is so as credit chain becomes shorter when an importer operates also as first stage dealer; Moreover, such assessees henceforth shall have option to file single quarterly return giving details of transactions as first stage dealer and importer in one single table; CBEC invites feedback from Departmental Officers and members of trade by June 6th : CBEC Circular

No service tax applicable on payment processing services proposed to be rendered to foreign entity, who provides domain registration services to customers in India; Such intended services, classifiable as “Business Support Services”, would be rendered on applicant’s own account for a fee equal to operating costs incurred plus 13% mark-up; Consequently, since recipient is located outside India and applicant would receive payment in convertible foreign exchange, these services would qualify as ‘export’ in terms of Rule 6A of Service Tax Rules and remain non-taxable for purpose of service tax; Further, no services can be said to have been provided to Indian customers as applicant would receive fees from foreign entity even in respect of those customers who directly remit service charges through International Credit Card, wherein applicant is not in the picture

Company Law:

Query: Whether a partner would be able to give loan to or transact other commercial transactions with LLP?

Answer: A partner may lend money to and transact other business with the LLP and shall have the same rights and obligations with respect to the loan or other transactions as a person who is not a partner

Key Dates:

Advance information for the 1st fortnight of June of functions with booking cost > Rs1 lakh in Banquet halls, hotels etc. in Delhi: 27.05.2016

Issue of TDS/TCS certificates for March quarter by all deductors/collectors: 30.05.2016

“It always seems impossible until it’s done.”

“Originality will always catch the attention of a good critic whether you’re striving for success  or living proof of success. Be yourself! Stay  Original!”

We look forward for your valuable comments. www.carajput.com 

FOR  FURTHER  QUERIES  CONTACT US:

W: www.carajput.com

E: info@carajput.com

]T:011-233-4-33333 ,  9-555-555-480 Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 25, 2016

Professional Update For the Day:

Untitled15ADirect Tax:

IT : Merely because creditor could not be traced on date when verification was made, is not a ground to conclude that there was cessation of liability in terms of section 41(1) because cessation of liability has to be cessation in law, of debt to be paid by assessee to creditor[2016] 69  257 (Karnataka) Commissioner of Income-tax v. Alvares & Thomas

Transmission charges for electricity won’t attract TDS under sec. 194J[2016] 69  252 (Karnataka) Commissioner of Income-tax v. Gulbarga Electricity Supply Co. Ltd.

IT: TDS – the payment paid by the assessee to scheduled banks for opening letters of credit was in the nature of interest u/s 2(28A) – but since the amount had been paid to scheduled banks no tax was required to be deducted at source u/s 194A – No disallowance u/s 40(a)(ia) – M/s Vardhman Chemtech Pvt. Ltd. Vs. ACIT, Chandigarh (ITAT Chandigarh)

IT: Revision u/s 263 – the disallowances u/s 14A and u/s 36(1)(iii) of the Act were the matters before the CIT(A) – the same does not come under the jurisdiction of the CIT u/s 263 – M/s Deepak International Ltd. Vs. JCIT, Cir-V, Ludhiana (ITAT Chandigarh)

Bogus purchase and sale of shares: Law explained as to on whom the onus is to show that the purchase and sale of shares are bogus and the circumstances required to be proved by the AOArvind Asmal Mehta vs. ITO (ITAT Mumbai)

S.143(1)/ 147: Entire law on the reopening of s. 143(1) assessments in the light of Zuari Estate Development 373 ITR 661 (SC) explained Indu Lata Rangwala vs. DCIT (Delhi High Court)

Indirect Tax:

ST: Recovery of interest – Section 73B of the Finance Act 1994 – Collected Service tax from the transporters when no service tax was payable and not deposited to the Government – later amount was deposited with the government – Demand of interest set aside – M/s Chhattisgarh State Co-operative Marketing Federation Ltd. Vs. CCE&ST, Raipur (CESTAT New Delhi)

SC : Absent cargo loading / unloading, mere labour supply at customer’s packing-plant not ‘CHS’ [TS-197-SC-2016-ST]

CESTAT : Upholds input credit reversal on exempt goods; Duty-payment cannot render them ‘dutiable’ [TS-196-CESTAT- 2016-EXC]

Service Tax : Services received from foreign intermediary in connection with raising of External Commercial Borrowings (ECB) is liable to service tax under ‘Banking and Other Financial Services’ under reverse charge in hands of Indian service recipient[2016] 69  266 (Mumbai – CESTAT) Gitanjali Gems Ltd. v. Commissioner of Service Tax

Cenvat Credit : Payment of cenvat-reversal under rule 6 of CENVAT Credit Rules, 2004 is in nature of ‘other tax’ and is, therefore, not includible in ‘transaction value’ of exempted goods, even if reversal amount is recovered from buyers

Cenvat Credit : When assessee is paying specified percent cenvat-reversal on value of ‘exempted HDPE pipes’ used for manufacturing ‘exempted sprinkler system’, they are not required to pay cenvat-reversal on value of ‘exempted sprinkler system'[2016] 69  265 (New Delhi – CESTAT) Commissioner of Central Excise, Indore v. Kriti Industries (India) Ltd.

SC: 9 Judge bench to decide entry tax validity; Hearings to commence July 18 [TS-200-SC-2016-NT]

Cenvat Credit : If Modvat credit could not be used by assessee due to restriction imposed by department, balance lying in Modvat account must be allowed as credit in Cenvat account[2016] 69  216 (Patna)Commissioner of Central Excise v. Bata India Ltd.

Deputation of employees and sharing of cost on actual basis with group Cos. doesn’t amount to rendering of service[2016] 69  198 (Mumbai – CESTAT) Franco Indian Pharmaceutical (P.) Ltd. v. Commissioner of Service-Tax

VAT & ST: Validity of law – rate of tax – interstate movement of goods – The law validly enacted by a State Legislature cannot be challenged on the ground that it defies logic and common sense – M/s Schwing Stetter (India) Pvt. Ltd. Vs. CCT (Madras High Court)

Company Law:

Query: Is Director Identification Number (DIN) mandatory for filing Form FTE with ROC?

Answer:  No, DIN is not mandatory for Managing Director or Director of the Company for filing Form FTE to strike off the name of Company under the Fast Track Exit mode Scheme. Details of Managing Director or Director can be filled up for inserting Permanent Account Number (PAN) or Passport Number instead of DIN.

Query: Whether a partner would be able to transfer his ‘economic rights’?

Answer: A partner’s economic rights (i.e. rights of a partner to a share of the profits and losses of the LLP and to receive distribution at the time of winding up) in the LLP shall be transferable. However, such a transfer shall not by itself cause the partner’s disassociation or a dissolution and winding up of the LLP.

However, such transfer shall not entitle the transferee or assignee to participate in the management or conduct of the LLP’s activities. Therefore, the transferee would not be deemed to be a ‘partner’ of the LLP just because a partner has transferred him the ‘economic rights’. For becoming a partner of LLP, the manner specified in the LLP Agreement or the provisions of the Act would have to be followed.

Other Update : 

ICAI: Committee on Economic, Commercial Laws & WTO (CECL&WTO) is organizing a Live Webcast on “Identifying Common FEMA Contraventions” on Friday, 27 May 2016 at 4-6PM. Link athttp://estv.in/icai/27052016

Key Dates:

Issue of TDS/TCS certificates for March quarter by all deductors/collectors: 30.05.2016

Due date for e-filing of form no. 61 for Q4 extended to 31st October, 2016 from 30th April, 2016. CBDT Circular no. 14/2016 dated 18/05/16.

 “When you judge another, you do not define them, you define yourself.”

Don’t find fault, find a remedy.  -Henry Ford

We look forward for your valuable comments. www.carajput.com

 

FOR  FURTHER  QUERIES  CONTACT US:

W: www.carajput.com

E: info@carajput.com

T:011-233-4-33333 ,  9-555-555-480 Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 14, 2016

Professional Update For the Day:

29

Direct Tax:

CBDT has granted relaxation of time for submitting Form ITR-V to be filed electronically without attesting digital signature for the Asst. Years from 2009-10 to 2014-2015 through Electronic Verification Code (EVC) till 31 AUG 2016.

Primary agricultural credit society can claim deduction u/s 80P. [ The Chirakkal service Co-Operative Bank Ltd vs. CIT (Kerala HC)].

Big B’ in Tax trouble; Apex Court nods to reopening of his tax case of 2001[2016] 69 taxmann.com 170 (SC) Commissioner of Income-tax, Mumbai v. Amitabh Bachchan

CBDT has not revised due dates for filing of TCS returns

Tax returns for A.Y.s 2009-10 to 2014-15 filled electronically under time limit of Sec.139, to be verified through ITR V Form by 31.08.16.CBDT Circular no.13/2016.

The government has gained the right to tax capital gains arising in Mauritius from sale of shares acquired on or after April 1, 2017.

Exercise of S. 263 on expenses claim withdrawn by assessee valid. [Commissioner Of Income Tax vs.Amitabh Bachchan (SC)].

IT: Depreciation in respect of electrical installations, elevators, DG sets installed in the building let-out by the assessee which is receiving rental income from the said building allowed – M/s IBC Knowledge Park Pvt. Ltd. Vs. CIT & DCIT, Bangalore (2016 (5) TMI 372 – Karnataka High Court)

Exercise of Sec. 263 on expenses claim withdrawn by assessee valid. [Commissioner of Income Tax vs.Amitabh Bachchan (SC)].

IT: Penalty U/s 271(1)(c) – penalty proceedings are distinguished and separate and assessee can raise fresh plea in the penalty proceedings which has been done in this case – Sudhir Awasthi Vs. ITO, W-5(2), Jaipur (2016 (5) TMI 367 – ITAT Jaipur)

The Income declaration scheme 2016 and the direct tax dispute resolution scheme 2016 expected to come into force on 01.06.16.CBDT press release of 12.05.16.

Sec. 40 (a) (i) is discriminatory and not applicable to Indo-US DTAA. [CIT vs. Herbalife International India Pvt. Ltd (Delhi HC)].

Section 94-A(1) is constitutional valid.[Madras High Court T. Rajkumar and Others vs. UOI and Ors. (Madras HC)].

Indirect Tax:

ST: Advertising agency service on commission basis – Model (1) Placement of advertisement in traditional media on behalf of the advertiser – Modes (2) Buying and selling of advertisement inventory in non-traditional media on its own account – In both Models there is no service tax liability – M/s AKQA Media India Pvt. Ltd. Vs. CST, Mumbai (2016 (5) TMI 456 – AAR)

VAT & ST: The contracts of construction of glass curtain wall executed by the Applicant would not constitute contracts for construction of buildings mentioned in Para A of the Notification dated 8 MAR 2000 issued for the purpose of section 6A(1) of the Works Contract Act – M/s Permasteelisa Vs. ACST & DCST(2016 (5) TMI 497 – Bombay High Court)

DTAA: After successful renegotiating tax treaty with Mauritius, the GoI is looking to rework the double taxation avoidance pact with Singapore to plug the leakage.

Service Tax wrongly paid on the manufacturing activity is allowed to be adjusted against excise duty. [Hyva India Pvt. Ltd. vs. Comm of Central Excise, Customs and Service Tax, Bangalore-I (2016) 68 taxmann.com 383 (CESTAT)].

ST: Import of internet connectivity services – The server placed outside India are meant for internet connectivity services and can’t be considered as hiring of simple physical space for placing servers – prima facie case is in favor of assessee – M/s HT Media Ltd. Vs. CST, Delhi (2016 (5) TMI 377 – CESTAT New Delhi)

VAT & ST: Detention of goods in transit – detention order passed u/s 70A of the GVAT Act suffers from the breach of principles of natural justice as well as lack of application of mind and therefore stands vitiated – Jay Ambey Traders Vs. State of Gujarat (2016 (5) TMI 435 – Gujarat High Court)

DVAT Regd dealers to display certificate of registration at principal place and certified copy at other places of business in Delhi. DVAT circular no: 4 of 2016-17.

VAT on diesel reduced to 16.75% from 18% in Delhi

Excise & Customs : Before initiating garnishee proceedings for recovery of dues of assessee from assessee’s debtor under Section 11(2), revenue must first of all adjudicate what sums are due to Government[2016] 69 taxmann.com 37 (Bombay)  Sikkim Ferroys Alloys Ltd. v. Office of the Assistant Commissioner of Central Excise

Changes in VAT rate schedules w.e.f 10.05.2016. VAT rates on sweets and namkeen, marble, footwear, e-rickshaws reduced to 5%. DVAT Notification dated 09.05.2016.

Govt. amended Mauritius Treaty to bring LTCG, STCG & Derivatives Income to tax at par with the Domestic Tax w.e.f. 01.04.2019. No tax till March 31, 2017. From 01.04.17 to 31.03.2019, LTCG is exempt, STCG to be taxed @ 7.50% & Derivatives Income to be taxed @15%.

Company Law:

MCA has notified The Companies (Registration Offices and Fees) Amendment Rules, 2016. The Ministry has amended Forms GNL-1 and GNL-4 which shall be compatible with the latest V2 platform designed by the MCA.

Other Update :

Rajya Sabha passes the insolvency and bankruptcy bill and the finance bill 2016 on wednesday, 11th May, 2016.

Get ICAI now mobile app for latest ICAI updates. Available on android, iOS, windows and blackberry 10. To download please visit: – http://www.icai.org/mobile.

FEMA (exports of goods and services) regulations, 2015. Notification no. RBI/2015-16/395A.P. (DIR series) Circular No.68 [(1)/23(R)] dated may 12, 2016.

CAs to submit PAN nos. to ICAI at http://icai.org/new_post.html?post_id=12138. For DSC latest by 14th May, 2016.

Key Dates:

Deposit of DVAT TDS for April in Form DVAT-20: 15/05/2016

TDS/TCS return for March Quarter by all Deductors/Collectors Including Govt. on the Form 24Q,26Q,27Q and 27EQ:- 15/05/2016

Advance information for 2nd fortnight of May of functions with booking cost > Rs. 1 Lakh in Banquet Halls,Hotels etc. in Delhi : 12/05/2016

E-Payment of PF for April(No grace of 5 days): 15/05/2016

15.05.16 (Sunday) is last day to file TDS/TCS returns for Q4 of F.Y. 2015-16. TDS statements to be filed in 31 days from F.Y. 16-17.

 

The chief danger in life is that you may take too many precautions.      -Alfred Adler

Deep relationship is not built by forcing others to understand you but by giving them, the confidence that you will never misunderstand them.

We look forward for your valuable comments. www.carajput.com

FOR  FURTHER  QUERIES  CONTACT US:

W: www.carajput.com

E: info@carajput.com

T:011-233 -4 -33333 ,  9-555-555-480 Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 13, 2016

Professional Update For the Day:

Untitled7Direct Tax:

CBDT has issued a circular regarding Verification of tax-returns for Assessment Years 2009-2010, 2010-2011, 2011-2012 2012-2013, 2013-2014 and 2014-2015 through EVC which are pending due to non-filing of ITR-V Form and processing of such returns vide circular No. 13/2016 dated 09.05.2016.

Gujarat HC allows assessee’s writ, holds that interest on enhanced compensation doesn’t fall within the ambit of the expression “interest” as envisaged u/s 145A (which provides that interest received on compensation/ enhanced compensation shall be taxable in the year of receipt); Revenue had rejected assessee’s NIL TDS certificate application made u/s 197(1) on the ground that interest on enhanced compensation (received u/s 28 of the Land Acquisition Act) is taxable as income from other sources in terms of Sec 145A- Gujrat High Court

Only consistent loss making co. should be excluded from the list of comparables: ITAT

IT: Interest income accrued on time deposits – AO has only taken into account the Journal entries credited in the account. The AO has not taken into account the corresponding Journal entries debited – No additions –DLF Hilton Hotels Vs. CIT, Delhi (2016 (5) TMI 492 – Delhi High Court)

IT: Refund of TDS wrongly deducted – Deduction for TDS on Compensation u/s 28 of Land acquisition Act – ITO (TDS) directed to forthwith deposit such amount with the Reference Court which shall thereafter disburse such amount to the petitioner herein – Movaliya Bhikhubhai Balabhai Vs. ITO, Surat (2016 (5) TMI 488 – Gujarat High Court)

Indirect Tax:

HC reverses CESTAT decision, disallows MODVAT credit under Rule 57G of Central Excise Rules on the basis of invoices endorsed by consignee; Said Rule amended w.e.f. April 1, 1994 by which invoices issued by manufacturers and dealers in prescribed form were considered valid duty paying documents, thus eliminating endorsement thereof; Further, in terms of Notifications dated March 30, 1994 and July 4, 1994, invoices issued by specified category of persons viz. wholesale distributors, dealers & importers, enabled input credit availment; HC finds that CESTAT has ignored LB ruling in Balmer Lawrie & Co. Ltd. where it was held that after the issuance of Notification dated July 4, 1994, invoices can be issued only by a registered dealer and only then MODVAT credit can be claimed on strength thereof; Hence, by virtue of changes in procedure, manufacturer could avail MODVAT credit only upon invoices being issued under Rule 52A, holds HC thereby allowing Revenue appeal  : Gujarat HC

HC dismisses Revenue appeal, upholds availment of CENVAT credit by company HO i.r.o. input services rendered to various units, absent restriction of proportionate distribution in terms of Rule 7(d) of CENVAT Credit Rules; Rule 7 at relevant time, permitted input service distributor (ISD) to distribute CENVAT credit of input services to its manufacturing units or units providing output services subject to conditions that (a) credit distributed does not exceed service tax amount, and (b) credit of service tax attributable to service used by one or more units exclusively engaged in manufacture of exempted goods or providing exempted services shall not be distributed.- Rajsthan High Court

Company Law:

MCA has notified new versions of e-forms PAS-3, CHG-1, DIR-12, SH-11 and FTE.

Word of Wisdom:

Life is ten percent what happens to you and ninety percent how you respond to it.    -Lou Holtz

Life’s most persistent and urgent question is, ‘What are you doing for others?’     -Martin Luther King, Jr.

We look forward for your valuable comments. www.carajput.com 

FOR  FURTHER  QUERIES  CONTACT US:
W: www.carajput.com

E: info@carajput.com

T:011-233 -4 -33333 ,  9-555-555-480 Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 11, 2016

Professional Update For the Day:

Untitled34ADirect Tax: 

IT: Taxing of capital gains u/s.50B r.w.s.2 (42C) – sale of undertaking as a going concern for a lump sum consideration – addition made by the AO u/s.50B on account of gain arising from transfer of BOPP Films Undertaking confirmed – Supreme Industries Ltd. Vs. ACIT, CC-29, Mumbai (2016 (5) TMI 264 – ITAT Mumbai)

IT: Undisclosed income – Addition made on the basis of the statement during the survey u/s. 133A is not sustainable in the eyes of law – Avinash Kumar Setia Vs. DCIT, CC-17, New Delhi (2016 (5) TMI 261 – ITAT Delhi)

CBDT prescribes procedure for e-filing of Form 15CC in respect of foreign remittance made u/s 195

CBDT prescribes procedure for e-filing of Form 15G/15H

Provisions relating to gift apply only to an Individual or HUF and not to an AOP
[2016] 68 taxmann.com 376 (Delhi – Trib.) Mridu Hari Dalmia Parivar Trust v. Assessing Officer, Circle 31(1)

A person can apply for non-deduction of TDS u/s 195 even if he has been subjected to concealment penalty: CBDT

Now, TDS or TCS return can also be filed via incometaxindiaefiling.gov.in

Indirect Tax:

Excise & Customs : Where pre-deposit amount has been determined after considering/adjusting Cenvat credit amount, then, such ‘net pre-deposit’ amount has to be paid in cash and cenvat credit cannot be used to pay same[2016] 69 taxmann.com 10 (Kerala) Commissioner of Central Excise, Customs & Service Tax v. Kinship Services (India) (P.) Ltd.

Govt. entities in Delhi no more required to file details of purchases below Rs. 1000 in DVAT Form GE-II

ST: Levy of penalty – As the assessee had paid service tax and interest by showing their bonafides before issuance of SCN – Penalty liable to be waived of by invoking Section 80 – Cognizant Technology Solutions India Pvt. Ltd. Vs. CCE&ST, Chennai (2016 (5) TMI 230 – CESTAT Chennai)

VAT & ST: Merely because the advertisements of the advertisers were displayed on the Sites would not necessarily lead to the conclusion that they had acquired the right to use the Sites – Tim Delhi Airport Advertising Pvt. Ltd. Vs. CT&T (2016 (5) TMI 297 – Delhi High Court)

FEMA Updates:                 

Ministry of Commerce & Industry has issued  Policy on foreign investment for Asset Reconstruction Companies-amendment of paragraph 6.2.18.1 of ‘consolidated FDI Policy Circular of 2015’ vide press No. 4(2016 Series) dated 06/05/2016.

MCA Updates:

MCA has issued Companies (Registration Offices and Fees) Amendment Rules, 2016 vide Notification dated 06/05/2015, which shall come into force from the date of their publication in the Official Gazette. The New Rules has further substituted Form No. GNL-1 (Form for filing an application with Registrar of Companies) and Form GNL-4 (Form for filing addendum for rectification of defects or incompleteness)

Word of Wisdom:

The most difficult task is to make everybody happy. The simplest task is to be happy with everyone. Surprisingly, the purpose of both are the same.

Mankind is made great or little by its own will.      -Friedrich Schiller

Life isn’t about finding yourself. Life is about creating yourself.      George Bernard Shaw Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE MAY 5, 2016

Professional Update For the Day:

Untitled24A

DIRECT TAX:

IT: Waiver of levy of interest u/s 234B – Application made u/s 119(2)(a) before CCIT – Chief Commissioners of Income Tax cannot exercise that power except in accordance with directions which are issued by the CBDT – Arun Sunny Vs. CCIT & DCIT (2016 (5) TMI 74 – Kerala High Court)

IT: Deemed dividend addition u/s.2(22) – trade advance in relation to business transaction cannot be treated as deemed dividend – M/s Penguin Apparels Pvt. Ltd. Vs. ACIT (2016 (5) TMI 71 – ITAT Chennai)

CBDT has extended due date for payment of TDS on Transfer of Immovable Property u/s 194IA from the existing 7 days to 30 days – Notification No.30/2016, dt.29.04.2016

CBDT has issued Income Tax (10th Amendment) Rules, 2016. The Board has made submission of report in relation to the approval of in-house research and development facility in Part A of Form 3CL and quantifying the expenditure incurred on in-house research and development facility by the company during the previous year and eligible for weighted deduction in Part B of Form No.3CL, electronic. It has also introduced a new Form 3CLA to be submitted electronically to the Secretary, Department of Scientific and Industrial Research on or before the due date specified in Explanation 2 to sub-section (1) of section 139 of the Act for furnishing the return of income, for each succeeding year. 

INDIRECT TAX:

ST: Test of input being used in or in relation to manufacture is to be applied to consider allowance of CENVAT credit of the service tax paid on the input utilized and having relevance to the output manufactured –M/s ITC Ltd. Vs. CCE, Salem (2016 (5) TMI 89 – CESTAT Chennai)

VAT & ST: A quasi judicial authority should discharge the statutory discretionary powers independently and not under the dictation of superior officers – Kumagai Skanska Hcc Itochu Group Vs. CVAT (2016 (5) TMI 77 – Delhi High Court)

Delhi Com Vat in a meeting informed that the Notification dated 12/4/16 relating to ITEM / ITEM Code being issued by finance deptt. after partial modification from relevant deptt. to come up soon. Further, assured DVAT systems will be ready with the option of accepting Q4 returns on old pattern or new pattern by 8/5/16. Furthermore, vide Notification no. 157 dated: 3/5/16 use of DSC for Q4 made optional for all dealers. TEAM STBA

OTHER UPDATE

IASB,ICAI org. certificate course on concurrent audit at hamirpur from may 7, for regn call: 09418026466, or mail at  info@himachalicai.org

Registration opens for ICAI certificate course on service tax starting @ Delhi from 4 June 16, contact- 120-3045954,  visit www.idtc.icai.org

ICAI invites innovative suggestions for govt. on policy matters. Link: https://goo.gl/2OymKi  Email: neac@icai.in

Dena Bank invites applications by CA firms for empanelment as Concurrent Auditors for the period July 2016-June 2017 to be submitted by 10.05.16.

KEY DATES:

Last date of E-payment of service tax foe April by companies vide Challan No. GAR-7 -06/05/2016

It should be noted that – Last date of filing TDS returns for F.Y 2015-16 shall be 15thMay 2016.

WORD OF WISDOM:

One today is worth two tomorrows. -Benjamin Franklin

“Keep your eyes on the stars and your feet on the ground.”

We look forward for your valuable comments. www.carajput.com

FOR  FURTHER  QUERIES  CONTACT US:

www.carajput.com

E: info@carajput.com

T:011-233 -4 -33333 ,  9-555-555-480 Continue reading

Facebooktwittergoogle_plusredditpinterestlinkedinmail